James Dondero has, over the years, risen to become one of America’s most decorated alternative lending financial consultants. James works in cahoots with syndicated bankers to issue out lucrative collateralized debt obligations (CLOs) to any interested buyers. The rationale behind the high-risk, high-yield CLOs is quite straightforward to fathom, even for complete finance newbies. As opposed to a conventional leveraged loan that has a fixed interest rate, CLO experts like James Dondero pool together hundreds of loans before subdividing them into the so-called ‘tranches’ with lower interest rates. Follow James on Linkedin.
Benefits of CLOs
The different classes of CLO holders earn huge dividends in the event that the borrowing companies default on their loan repayments. Most importantly, CLOs act to reduce the risk factor of the lending institutions, and hence, spur capital lending.
About Highland Capital Management
Issuing CLOs are one of the core financial services offered by Highland Capital Management owned and run by James Dondero. Dondero took over as the present President and co-founder of Highland in 1993. His investment partner was Mark Okada. As of 2017, Highland Capital was an SEC-accredited company that held assets estimated at $13.5B. Other vital lending services provided by James’ firm include mutual funds, separate accounts, private equity accounts, public pension plans, endowments, ETFs and investments in emerging markets.
Jim’s Career Highlights
Over the years, Highland Capital Management has upped its investments in the healthcare asset sector. Today, the outstanding firm controls healthcare assets of well over $2.3B. Jim is also in-charge of other luminary companies in the states. These include Nexpoint Capital, Nexbank, MGM Studios, Cornerstone Healthcare, CCS Medical and the American Banknote Corporation.
Education and Certification
The brilliant investor is a business major alumnus of the University of Virginia. Dondero began his career in the mid-eighties. In 1985, Jim worked at American Express. His remarkable strategies helped American Express to earn an additional one billion dollars. James Dondero next high-profile job was as the Chief Investment Officer of GIC Protective Inc. Jim served at GIC Protective from 1989 to 1993. In those five years, Jim was able to grow that company’s revenues to a whopping $2B.
Mr. Dondero practices as both a Chief Financial Analyst and a Certified Management Accountant. Jim lives and works in Dallas, Texas. Read more about James at Crunchbase.